Fundamentally USD is gaining strength back and it will strengthen due to rate hike expectation.
CAD is more of a bearish mode due to total economic condition and also due to plunging in oil price.
Technically this also gives us a great opportunity to go long. I'm looking into Daily chart with Heikin Ashi candle. The price action is about to reverse from 1.3200...
USDCAD has formed an inverse head & shoulder pattern on the 4hr with daily showing signs of the bulls coming back and price reacting to the 78% fib level a mayor trend line zone of a weekly Chanel with a possible yet another higher low forming.
Order set above the Inner TL once it has broken on the 4hr which is also the 4hr inverse h&S neckline.
Good evening traders,
Energy traders would have noticed the somewhat eery price action on oil prices recently. I believe that recently losses are attributed to:
- Emerging doubts over the degree of compliance with OPEC production cuts as Iraqi exports remain high;
- Concerns about the rate of market rebalancing;
- Rapid rebound in U.S. shale production following...
My bias is continued Dollar strength and my higher time frame analysis has USD/CAD bullish.
The pair are reacting around the 1 hour support (green line).
i would go long here expecting a pattern similar to the one drawn in purple
this analysis require little explanation: we are approaching a level that has been rejected other times in the recent past. The Bat formation completes right at that level, boosting our confidence in this trade opportunity.
If you have questions, please do underneath.
Otherwise, see you in the next chart!
Okay guys firstly it is NFP tomorrow, however USDCAD daily chart is indicating a swing in play. Therefore following technicall analysis we should see a weaken dollar, I would suggest to expect to see lows of 1.28500 within next week.